Behaviors of a Lean Leader. 1  Obtaining results. 2  Ensuring that how the results are achieved is the most effective utilization of all resources, in the direction of the ideal state. 3  Improving how the organization accomplishes results.
AFUDC is an accounting practice whereby the costs of debt and equity funds used to finance plant construction are credited on the statement of income and charged to construction in progress on the balance sheet. If a project under construction is delayed for an extended period of time, AFUDC may be stopped.
AFUDC's equity component is considered a permanent difference under Opinion no. 11; consequently, no deferred tax liability is recorded for this book versus tax difference. Under Statement no. 109, AFUDC's equity component is considered a temporary difference for which a deferred tax liability must be established.